Davis Delays MTBE Removal in California

March 18, 2002

The Renewable Fuels Association (RFA) has expressed dismay that California Gov. Gray Davis has delayed the deadline for removing MTBE from California's gasoline supply until Jan.1, 2004. The ethanol industry trade group urged California refiners to end the use of MTBE voluntarily by the end of this year.

"Governor Davis' about-face on the MTBE phase-out schedule is completely unjustified and places political expediency ahead of safe drinking water," said Bob Dinneen, RFA president. "(The) decision represents a callous breach of faith with California consumers who want MTBE out of their drinking water now, gasoline refiners and marketers that have invested to meet the original deadline, and farmers across the country that have added more than a billion gallons of ethanol capacity to enable the timely transition away from MTBE."

Polls show more than 76% of Californians support the original Dec. 31, 2002, MTBE ban deadline ordered by Gov. Davis in March of 1999. In response to that decision, the U.S. ethanol industry initiated the most aggressive and rapid expansion in its history. By the end of 2002, more than 25 new ethanol plants will be opened and several expansions will be completed, increasing ethanol production capacity by more than 1 billion gallons per year.

"The governor has made a horrible decision for California, but the oil industry does not need to compound Gov. Davis' mistake by maintaining its reliance on MTBE," said Dinneen. "Every refiner and marketer of gasoline in California has confirmed the industry is ready to transition from MTBE to ethanol as originally planned. We believe many of those companies will uphold their commitment to California consumers and environmental stewardship. Polls show California consumers will reward oil companies who cease using MTBE as scheduled."